The passenger traffic in the railway sector increased to 6.4 billion across India in fiscal year 2023. Passenger rail traffic from India’s suburbs was much higher than the non-suburban rail traffic at the end of fiscal year 2018. Overall, the railway network transported over 22 million passengers every day pre-pandemic era. Freight trafficOver one billion metric tons of freight was carried across India in 2020. The country had over nine thousand freight trains in operation that amounted for a daily freight transport volume of over three million metric tons as of March 2020. Freight traffic was also the major source of revenue for Indian Railways. Road aheadThe railway network in India was forecast to become the third largest across the globe in the next five years. Indian Railways was one of the biggest employers in the country. The freight traffic via dedicated freight corridors was projected increase at a compound annual growth rate of over five percent by the end of fiscal year 2022.

Fertilizer was the leading commodity carried by Indian Railways during fiscal year 2023, with a share of more than 83 percent of the total production plus import volume. The agriculture industry in the country is the primary source of employment for the majority of the population.

At the end of fiscal year 2022, the length of railway routes across the Indian state of Uttar Pradesh was about 8.8 thousand kilometers. The railway network in India was one of the largest in the world. Indian Railways has over 12 thousand passenger trains and over seven thousand freight trains commuting on a daily basis.

As of December 2022, 66 million travelled through Mumbai's local trains including Western and Central Railways. The slump in ridership was experienced in 2020 and 2021 during COVID and work from home regulations. The ridership is yet to reach pre-COVID levels.

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Public Transportation Market Size 2025-2029

The public transportation market size is forecast to increase by USD 110.9 billion at a CAGR of 6.4% between 2024 and 2029.

Increasing domestic trips for public transportation is the key driver of the public transportation market, as more people rely on efficient and affordable transport options for their daily commutes. The upcoming trend is the development of hyperloop transportation systems. With the potential to revolutionize travel, these high-speed, energy-efficient systems promise to significantly reduce travel times, offering a futuristic solution to meet growing transportation demands and contribute to sustainable urban mobility.
The market is witnessing significant growth due to several key factors. One major trend is the increasing demand for domestic trips, which is driving the need for efficient and affordable public transportation solutions. Another trend is the development of advanced transportation systems, such as hyperloop, that offer faster and more sustainable options for travel. Additionally, the availability of alternatives, such as ride-hailing services and car sharing, is pushing public transportation providers to adapt and innovate to remain competitive. 

What will be the Size of the Public Transportation Market During the Forecast Period?

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The market is experiencing significant growth due to urbanization and increasing population density. Mass transportation systems, including public buses, subways, taxis, auto rickshaws, and rail transportation, are essential in mitigating traffic congestion and reducing greenhouse gas emissions. Environmental concerns and air quality issues have led to the adoption of green technologies such as electric buses, hybrid vehicles, and high-speed trains.
Moreover, the rise of smart cities and digitization has transformed the industry, with mobility apps, third-party platforms, and ride-sharing services becoming increasingly popular. The road transportation system continues to face challenges in terms of traffic congestion and environmental impact, making public transportation an attractive alternative for commuters. The market is expected to continue growing as the need for sustainable and efficient mobility solutions becomes more pressing.

How is this Public Transportation Industry segmented and which is the largest segment?

The public transportation industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Bus
  Metro
  Suburban rail
  Light rail transit


Distribution Channel

  Offline
  Online


Geography

  APAC

    China
    India
    Japan
    South Korea


  North America

    US


  Europe

    Germany
    UK
    France


  South America

    Brazil


  Middle East and Africa

By Type Insights

The bus segment is estimated to witness significant growth during the forecast period. Public transportation, specifically bus systems, plays a crucial role in urban areas by providing an efficient, cost-effective, and flexible solution for moving people and goods. Bus transportation systems encompass various designs, services, and integration levels with other modes of transportation. The demand for fast and convenient transportation in cities, with their high volume of educational institutions and businesses, necessitates the use of high-capacity solutions like buses. Effective bus transportation is essential to the functioning of urban areas.

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The bus segment was valued at USD 168.60 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in APAC is projected to lead the global industry due to increasing urbanization, population growth, and the need for efficient transportation systems to reduce traffic and emissions from private vehicles. This region's market expansion is driven by significant investments in public transport infrastructure, rising disposable income, and the growing number of tourists. Furthermore, environmental concerns have led countries such as Japan, China, South Korea, India, and others to adopt electric buses for their public transportation systems. The increasing use of smartphones and internet connectivity also contribute to the market's growth in APAC.

Public Transportation Market Dynamics

Our public transportation m

The rolling stock market was estimated to be worth just under 54.6 billion U.S. dollars in 2023, with Asia-Oceania accounting for the largest share.
Rolling stock market in Asia-Pacific
Among the largest and fastest-growing countries within the Asia-Pacific region for rolling stock are India and China, with Indian Railways and CRRC ranked as key market players for this region. Reasons contributing to expansion in countries such as India include a growing population and a considerable number of migrant workers who rely on rail as a means of commuting. Back in 2020, there were approximately 285 million migrant workers in China.
Driving innovation in the sector
One of the world’s leading rolling stock manufacturers, CRRC, reported investments of over 13 billion Chinese yuan in its research and development activity in the 2022 financial year. As the company continues to develop and manufacture innovative technologies, such as electric and hybrid rail systems, CRRC has started to address concerns about sustainability and emissions while ensuring that it maintains a technological advantage over its competitors in the global market.

In 2015, Czechia had the highest rail network density of any country, coming in at 122.61 meters of track per square kilometer. The density of a county’s rail network is a function not only of the amount of track laid, but also the country’s geographic size.

Freight and passenger rail

Included here is track used for both passenger and freight rail. The volume of freight rail is higher than the volume of passenger rail in all regions, but by widely varying margins. In some cases the difference is massive, such as in North America where freight volumes are approaching 100 times higher than passenger volumes. Conversely, in Europe the difference in volumes is only around 10 percent.

Overall rail network size

Rail network density is not a measure of the overall size and composition of a country’s rail network. For example, the large populations and high level of urban rail found in the Asia Pacific region means that China, India and Japan combined account for around three quarters of global passenger rail traffic, even though none are in the top five for rail network density. Similarly, Russia has a higher freight rail volume than the United States despite having a much lower track density.

In 2019, the average distance of commuters in Mumbai using train and metro was almost 24 kilometers. Commuting by car came second with 12 kilometers. Poor public transportation was responsible for traffic congestion and air pollution in one of India's megacities.